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Activision has just announced it has halted development on the open-world, action title True Crime: Hong Kong and a new game in the Guitar Hero franchise.

According to the release, Activision has decided to disband its Guitar Hero-specific business unit and cancel development on a Guitar Hero title slated for release later this year "due to continued declines in the music genre."

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According to Eurogamer, teams focusing on development of both the Guitar Hero and DJ Hero franchises have been hit with job cuts. Although numbers were not made specific, nor were job losses even mentioned in the Activision financial release, sources at Eurogamer say developer FreeStyleGames [DJ Hero 2] has been hit with "severe layoffs." FreeStyleGames was purchased by Activision in 2008.

Reports of any layoffs have yet to be confirmed. Shacknews will update this post if new information becomes available.

Activision noted that the decision to cancel both titles was "based on the desire to focus on the greatest opportunities that the company currently has to create the world's best interactive entertainment experiences."